FG approves N185bn to settle gas debts
The Federal Government of Nigeria has approved N185 billion to settle outstanding gas supply debts owed to gas companies, a move aimed at boosting electricity generation and improving power supply across the country. The approval was announced by officials from the Ministry of Power, who said the payment is part of broader efforts to address financial bottlenecks in the energy sector.
The funds will be used to clear arrears owed by electricity distribution companies (DISCOs) and the Nigerian Bulk Electricity Trading Company (NBET) to gas producers. By settling these debts, the government hopes to ensure uninterrupted gas supply to power plants, reduce generation shortfalls, and prevent frequent electricity outages that have affected households and businesses.
Officials explained that the settlement is expected to stabilize the sector and enhance investor confidence in Nigeria’s power industry. The move also forms part of ongoing reforms designed to strengthen the value chain from gas production to electricity distribution, ultimately improving efficiency and service delivery.
Energy experts have welcomed the decision, noting that prompt payment of gas debts is crucial for sustaining electricity generation and meeting growing power demand. They emphasized that consistent gas supply is a major factor in reducing load shedding and ensuring reliable electricity across the country.
The approval comes amid increasing pressure on the government to resolve energy sector challenges, particularly as industrial activities and residential power needs continue to rise. The injection of N185 billion is seen as a strategic step toward stabilizing Nigeria’s electricity supply and supporting economic growth.
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